South African property market sees steady growth

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Buying a house is stressful enough, especially as reports suggest that times are getting harder, but the latest report has shown that the South African property market looks promising as it shows a slow but meaningful growth, this is all in spite of a post-debt crisis environment.

The CEO of Korbitec, Dawie Verryne, has said that: “Since the market low point in August 2009, we have seen a small but steady growth in property transaction volumes.”

He also then went on to say that more buyers are pooling funds in order to become homeowners and because of this property purchases are being made by multiple buyers.

Although the property market still seems to be fairly stagnant across the globe, these new trends may offer some promise to potential investors. The South African’s banking institutions dictate the strength of the market but many of the banks have now relaxed their mortgage lending criteria, making it a little easier for people to sign up.

Sadly, there is bad news for investors as they are getting poor returns. South African property prices have inflated from 5% to 7% over the past year and as a result of this investors have received poor returns generally. On the plus side, however, South Africa, unlike the USA and various countries in the EU has seen no sign of a price decline.

Dawie Verryne remains very positive and remains hopeful that in the next three to four years the property market is likely to return to its peak. The market fluctuations which have been seen recently are just a frustrating reality.

Transferring money to South Africa

If you are looking to invest in South Africa, think carefully regarding how to transfer money abroad. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are sending money to South Africa – which you will inevitably have to do if you are looking to make a property investment, be sure to compare the market before you buy your overseas currency.

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South African property market sees steady growth

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